Just 16% Of Life Insurers Concerned Coronavirus Fallout Will Be Severe
March 25, 2020 by Tracey Longo
When it comes to the coronavirus outbreak, 39% of life insurers see it as being similar in severity to a SARS-like (or moderate) pandemic, according to a survey from Limra, a trade group for life insurance and financial services companies.
Another 26% of survey respondents consider it to be more similar to a severe flu season. Only 16% of life insurance companies view coronavirus as having the potential to be a severe pandemic with higher mortality than either SARS or the flu.
Insurers are running a variety of virus scenarios in order to assess and plan, according to the survey. Some 91% of companies have a pandemic stress scenario in place. In addition, 71% have assessed and quantified the potential impact on their key businesses in the event of higher mortality.
“It’s reassuring to know that our member companies are planning for what they would do and how a pandemic might impact their customers,” Marianne Purushotham, Limra’s corporate vice president, said in a statement.